With a Budget Deal Done, What's Next for U.S.?

10/17/2013 10:35AM

An eleventh-hour compromise on Capitol Hill averted an unprecedented default on U.S. debt obligations but the celebration will probably be short-lived. Mark Hopkins, senior economist at Moody's Analytics, joins MoneyBeat.

This transcript has been automatically generated and may not be 100% accurate.

... and do ... this is MoneyBeat I'm Paul vignette and eleventh hour compromise on Capitol Hill last night ... averted and the president to default on U S debt obligations ... the celebration will probably be short lived ... last night's agreement requires the House and Senate ... to reach a long-term agreement ... on taxes spending by December thirteen ... a tall order given the previous track record ... what does this mean for the economic outlook and will lessons learned from the shutdown have a lasting effect for an answer were joined by Mark Hopkins senior ... economist ... for Moody's Analytics Mark thank you for taking a few minutes this morning ... we are ... so ... the underwater and a lot is ... we have had a series of these budget fights over the past couple of years ... is there any kind of lasting damage anonymous talking about that the percentage of GDP but ... lasting damage to the economy from these fights ... but there is a debate that ... it may be one that we will be able to really is that's ... for work in a few years but ... it's clear we look ... for that is ... competent managers as I entered the in in this even then the stock that I've ... that there's still an elevated sense of apprehension ... that often credited with creating and it's up partly holding back ... the recovery ... in the fundamental ... duty of what what the cover really the pits it up ... as investor confidence and investment and and I think that ... Intel is presented as a permanent ... change in the dynamic is launching an ... that they continue to weigh ... on some of the ... drivers ... they think this one ... pretty nasty pretty ugly fight ... do you think that any lessons were learned in Washington he think that ... maybe the next time this comes up ... which unfortunately is in a couple of months ... that we will have this kind of a nasty fight again ... certainly I think everyone hope so ... Annette and ... that something that with that after the great irony is that that that is well ... aam and after the twenty eleven debt ceiling the last big By where there were the FASB downgrade ... I think that that that you know people are optimistic ... I think that they get people ... telling me exactly the things they they ... they ... let the dough or ... so I've ... been in order to meet for months when ... all the glitches ... I tell people something ... right at that point ... by potentially I've ... that in addition to the recall one ... he thought the economy was ... strong on its take on the economy ... I look wages not growing much if at all ... I look good jobs the kinds of jobs being created ... to me and CIA a lot of snow ... no unused capacity on its legs in the economy when you when you really think the economy especially going into the holidays ... but no question that the economy and the growing ... growing more slowly than when when ... both were or are normally expected in the wake of of of ... the percussion and the bar into ... the technical recovery ... but when you look at the end of that ... you are a ... number of years which are competent with a profit of eleven teams ... in all ... it took more than the usual ... time ... you Institute ... as a solid recovery with the ... fundamental point that you look it ... I've ... had worked on profitability ... you don't cheat the corporation's Bounty household ... in any of the market in the housing market that fundamental ... seems that all be in play and the question what it will begin ... and and it's not simply that he ... has the confidence I that that the law by ... one of them ... although the fact that there are a significant ... headwind been created by the policy that does ... we had a stimulus ... in a recession ... we do pulling back at the end of the South ... you create a drag and or doubling down on that obviously ... with with with that yet very large and in ... nearly two trillion over the years ... that were started in twenty eleven ... Moody's Analytics thank you very much his time ... you